19.705-5 Awards involving subcontracting plans
Source: FAR 19.705-5 on acquisition.gov
Contracting officers must ensure subcontracting plans are properly submitted, evaluated, and incorporated into contracts, with SBA involvement and timely negotiation for letter contracts.
Overview
FAR 19.705-5 outlines the responsibilities of contracting officers when awarding contracts that require subcontracting plans. The section ensures that small business subcontracting goals are integrated into the acquisition process and that contractors are held accountable for their past and current subcontracting commitments. It details steps contracting officers must take, including evaluating contractor past performance on subcontracting plans, ensuring timely submission and incorporation of acceptable plans, notifying the SBA procurement center representative, and handling incentive fees. For letter contracts and undefinitized instruments, at least a preliminary plan must be included, with a final plan negotiated within 90 days or before definitization.
Key Rules
- Evaluation of Past Compliance
- Contracting officers must consider a contractor’s previous compliance with subcontracting plans when determining responsibility.
- Submission and Incorporation of Plans
- Officers must ensure a required subcontracting plan is submitted and made a material part of the contract.
- SBA Notification
- The SBA procurement center representative must be notified and given time to review the plan and contract.
- Incentive Fee Determination
- Officers must determine any applicable incentive fees related to the subcontracting plan.
- Preliminary Plans for Letter Contracts
- Letter contracts must include a basic plan, with a final plan negotiated within 90 days or before definitization.
Responsibilities
- Contracting Officers: Evaluate contractor past performance, ensure plan submission and incorporation, notify SBA, determine incentive fees, and manage preliminary/final plans for letter contracts.
- Contractors: Submit required subcontracting plans and comply with negotiated terms.
- Agencies: Oversee compliance and facilitate SBA review.
Practical Implications
This section ensures that subcontracting plans are not only submitted but also meaningfully evaluated and enforced, supporting small business participation. Failure to comply can delay awards or result in non-responsibility determinations. Timely communication with SBA and proper documentation are critical to avoid award delays or compliance issues.
(a) In making an award that requires a subcontracting plan, the contracting officer shall be responsible for the following:
(1) Consider the contractor’s compliance with the subcontracting plans submitted on previous contracts as a factor in determining contractor responsibility.
(2) Assure that a subcontracting plan was submitted when required.
(3) Notify the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402(a)) of the opportunity to review the proposed contract (including the plan and supporting documentation). The notice shall be issued in sufficient time to provide the representative a reasonable time to review the material and submit advisory recommendations to the contracting officer. Failure of the representative to respond in a reasonable period of time shall not delay contract award.
(4) Determine any fee that may be payable if an incentive is used in conjunction with the subcontracting plan.
(5) Ensure that an acceptable plan is incorporated into and made a material part of the contract.
(b) Letter contracts and similar undefinitized instruments, which would otherwise meet the requirements of 19.702(a)(1)(i) and (ii), shall contain at least a preliminary basic plan addressing the requirements of 19.704 and in such cases require the negotiation of the final plan within 90 days after award or before definitization, whichever occurs first.